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,Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz (pic) said political stability would contribute to a more stable and conducive environment for the development of the country’s investment sector, capital market and economy.

KUALA LUMPUR: The signing of the memorandum of understanding (MoU) on transformation and political stability between the federal government and Pakatan Harapan (PH) will have a positive impact on the country’s economic growth in the fourth quarter of 2021 and beyond.

Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz (pic) said political stability would contribute to a more stable and conducive environment for the development of the country’s investment sector, capital market and economy.“Overall, the implementation of stimulus packages, the reopening of economic sectors and Malaysia’s diversified economic structure have successfully resulted in the nation’s gross domestic product (GDP) growth of 16.1% in the second quarter of this year.

“The Finance Ministry is confident that the MoU will continue to support economic recovery and the GDP growth projection of between 3% and 4% for this year,” he said in a statement yesterday.

The MoU was signed between Prime Minister Datuk Seri Ismail Sabri Yaakob and heads of the PH component parties at the Parliament on Monday.

Meanwhile, Tengku Zafrul said the government would increase the ceiling cap for the Covid-19 fund if necessary to continue supporting the people and businesses that are in need.

He said on Sept 10, the Cabinet approved a proposal to amend the Temporary Measures for Government Financing (Coronavirus Disease 2019) Act 2020.

This included raising the ceiling for the Covid-19 fund from RM65bil to RM110bil and increasing the government’s statutory debt ceiling from 60% to 65% of the GDP, he said.

The amendment to the bill will be tabled for the Dewan Rakyat’s approval next month. — Bernama


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